Health Insurance Costs

[kdhmps]

Today was my first day of work- a half day orientation at my nonprofit organization's executive offices. It mostly covered benefits. To my surprise, my health insurance is very expensive---more expensive than it was working for a corporation! HMO is going to be around $160/month. PPO will be $207/month. This doesn't include dental insurance... My starting salary is $25k, which will be bumped up to $29k in January. I have a master's degree. I am 25. Granted this is social services, but most nonprofits I've worked for have great benefits packages. I can't really afford health insurance between my car payment and $650 in student loans every month. I'm really bummed. I was all excited over this job. I feel I am qualified only for this sector of employment, and I knew it wouldn't be as lucrative as other fields... but I never thought it would be this bad.

[Kitty]

You probably should have asked about benefits before accepting the position.

[SmilesSoSweet]

And in most cases, what that company is offering may be reasonable. They really can't consider every employee's personal finances either. There may be someone else that doesn't have to worry about a car payment or have that high of a monthly student loan payment and can still afford this health plan they're offering.

My current job and my last job paid 100% of my medical, but my coverage was a $250 deductible and I have to pay 20% of all my medical bills and I go to the doctor a lot too.

[Xander]

That's fairly expensive. I pay $28/month with $0 co-pay, but $1000 deductable (which I'll never actually max). If the cost is a "deal breaker" then I'd start looking for a new job (while working at this new one).

[wordsmith]

The amount deducted from my employer-sponsored group health is $30 each paycheck...which are weekly, making it $120 a month total (medical only, no dental, and limited medical at that...no OB/GYN, etc.). I work for a paper owned by a small corporation parent group, and their "great" benefits suck. When I worked for a tiny nonprofit, I had far better benefits. Hell, when I VOLUNTEERED for a tiny nonprofit, I had far better benefits. No copay, no nothin' and I didn't pay in at all.

I dunno. Health care's not gonna get cheaper. I've covered two years' worth of teachers' union strikes following negotiations, and sticking points are ALWAYS the inevitable increase in insurance costs. But if the costs go up to employers (and they will), they're for sure gonna pass them on to employees (and they do).

[winneythepooh7]

My employer pays about half of my insurance as well, and deducts it from each paycheck. I also think it's before taxes--I don't really notice it really. I've also found that the more my salary goes up, the more it stays the same because I make more $$$$ now.

[Kitty]

My employer (non-profit) pays 100%. I only have to pay for copays ($10). My vision and dental come out to about $8 a month.

[kdhmps]

I did ask about benefits---they said full coverage--I guess I assumed that meant full coverage because I worked in a similar position for this state-sponsored program where I didn't have to pay hardly a thing in health insurance... I assumed wrong! I really like the organization... It's not their fault health insurance is so expensive, I realize that. I guess it is just a bummer. I need a winning lotto ticket. But I can't afford the $1 to play. ha ha

[Krishna]

See if you can do an HSA (Health Saving Account). At least then it's tax free. You need to have a high deductable plan to qualify for this. Might be something to look in to.

[SpaceMonkey]

That does seem pricey. I pay about $25 every paycheck (every two weeks) plus $10 co-pay.

[vxmike]

See if you can do an HSA (Health Saving Account). At least then it's tax free. You need to have a high deductable plan to qualify for this. Might be something to look in to.

I don't think you need a high deductable plan to get an HSA. I have great insurance with no deductibles and $10 copays and my employer still offers an HSA. I'm going to use it for Lasik next year so it will effectively be 1/3 off my net cost.

[cheshrcarol]

I don't think you need a high deductable plan to get an HSA. I have great insurance with no deductibles and $10 copays and my employer still offers an HSA. I'm going to use it for Lasik next year so it will effectively be 1/3 off my net cost.No, you don't need a high deductible plan to get an HSA, but your employer does need to offer it as a benefit.

What Krishna's thinking of is called a Catastrophe plan and that's when you have a really high deductible and low premium, and then if you have medical expenses they would mostly go towards your deductible unless you have a real "catastrophe". And those expenses can be reimbursed through your HSA. Some of those plans are funded by the employer with a match. Say, if you contribute $1000, they willl too. They're 2 separate accounts and you use up yours first which won't roll over from year to year, but the employer's will.

Most HSA's are complicated and have a lot of rules. I advise anyone considering one of these to have a complete understanding of how it will work, what you can get reimbursed for, and know that if you don't use it you lose it.

Back to the original question, that's only about $60 less per paycheck (assuming bi-weekly) since it's tax deductible. You may want to consider it. You won't have any other way to get insured if your emplolyer offers it, and if you have a medical emergency it could put you several thousand in debt.